Despite Fears of Massive Drop, New Home Sales Up in April
June 3, 2020
The sales of newly built homes were increased by almost 1% in April, as compared to the previous month. While this may not seem like much, it is massive when taking expectations into account. Economists had been bracing for a 22% decline.
The data is the latest in a string of good news for the housing market, which looks to have gotten through the coronavirus crisis largely unscathed, at least compared to other aspects of the economy. Homebuilder sentiment rebounded quickly, and mortgage applications have been steadily increasing in recent weeks.
The median new home prices fell 8.5% annually to $309,900. Some real estate experts posit that strong sales and falling prices may be indicative of people migrating out of urban centers after months of quarantine and lockdowns.